Document Content

DECREE

On duty free business

______________

Pursuant to the June 19, 2015 Law on Organization of the Government;

Pursuant to the April 6, 2016 Law on Import Duty and Export Duty;

Pursuant to the April 6, 2016 Law Amending and Supplementing a Number of Articles of the Law on Value-Added Tax, the Law on Excise Tax and the Law on Tax Administration;

Pursuant to the June 3, 2008 Law on Value-Added Tax and the June 19, 2013 Law Amending and Supplementing a Number of Articles of the Law on Value-Added Tax;

Pursuant to the November 14, 2008 Law on Excise Tax;

Pursuant to the November 26, 2014 Law Amending and Supplementing a Number of Articles of the Laws on Taxes;

Pursuant to the November 29, 2006 Law on Tax Administration;

Pursuant to the November 20, 2012 Law Amending and Supplementing a Number of Articles of the Law on Tax Administration;

Pursuant to the June 23, 2014 Law on Customs;

Pursuant to the November 26, 2014 Law on Investment;

Pursuant to the November 21, 2007 Law on Product and Goods Quality;

Pursuant to the June 17, 2010 Law on Food Safety;

At the proposal of the Minister of Finance,

The Government promulgates the Decree on duty free business.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

This Decree prescribes the management of duty free business activities, covering procedures for goods brought into duty free shops and duty free warehouses, customs supervision of duty-free goods transported among duty free shops, between duty free warehouses and duty free shops, and between duty free warehouses and aircraft, supervision of incoming and outgoing money of duty free traders in isolation areas and restricted areas, duty free sale activities, and reporting on duty-free goods to customs offices.

Article 2. Subjects of application

1. Persons on exit, in transit and on entry.

2. Persons entitled to privileges and immunities in Vietnam.

3. Crewmembers aboard seagoing ships operating along international routes.

4. Passengers onboard international flights from and to Vietnam.

5. Enterprises eligible to do duty free business as prescribed by law.

6. Customs offices and customs officers.

7. Operators of seaports, international civil airports and international railway stations.

8. Management units of international land border-gate economic zones and units assigned to manage international land border gates.

9. Organizations with rights and obligations related to duty free business activities.

10. Other state agencies coordinating in the state management of duty free business activities.

Chapter II

MANAGEMENT OF DUTY FREE BUSINESS ACTIVITIES

Article 3. Eligible persons and conditions for purchase of duty-free goods

1. Persons on exit or in transit after completing exit or transit procedures, passengers onboard international flights departing from Vietnam or persons awaiting exit entitled to duty free purchase:

a/ Persons on exit or in transit through international land border gates; international railway stations, grade-1 seaports and international civil airports may purchase duty-free goods at duty free shops in isolation areas; passengers onboard international flights departing from Vietnam may purchase duty-free goods onboard aircraft;

b/ Persons awaiting exit may purchase duty-free goods at inland duty free shops and receive their duty-free goods at goods receipt counters in isolation areas of international border gates where they depart;

c/ Foreign travelers by sea in tours who hold passports, laissez-passers or shore passes of passengers on exit or entry as prescribed but have no entry visa or exit or entry declaration may purchase duty-free goods at grade-1 seaports and inland duty free shops and receive their duty-free goods at border gates of departure after they complete exit procedures.

2. Passengers onboard international flights to Vietnam may purchase duty-free goods onboard aircraft flying to Vietnam.

3. Persons on entry may purchase duty-free goods at duty free shops in restricted areas of international civil airports after completing entry procedures but may not do so after leaving restricted areas of international civil airports.

4. Persons entitled to privileges and immunities in Vietnam may purchase duty-free goods at inland duty free shops. When purchasing duty-free goods for organizations, buyers shall produce duty free allowance books. When purchasing duty-free goods for individuals, buyers shall produce duty free allowance books together with their identity cards issued by the Ministry of Foreign Affairs or passports.

5. Goods buyers being crewmembers working aboard international seagoing ships (including ships flying foreign flags and ships flying the Vietnamese flag operating on international routes) may purchase duty-free goods at grade-1 seaports and inland duty free shops for personal use and common activities of crewmembers during the time their ships anchor at Vietnamese seaports or for use outside Vietnam’s territorial waters after their ships depart.

a/ For purchase of duty-free goods for personal use, individual crewmembers shall produce their passports or shore passes;

b/ For purchase of duty-free goods for common activities of crewmembers during the time a ship anchors at a Vietnamese seaport, the shipmaster or ship representative shall place a goods order, which must specify the ship number and date of entry, enclosed with a list of crewmembers and their passport numbers;

c/ For purchase of duty-free goods for use in the next voyage outside Vietnam’s territorial waters, the shipmaster or ship representative shall place a goods order, which must specify the ship number and date of entry, enclosed with a list of crewmembers and their passport numbers. Goods shall be brought into the ship’s hold for sealing, certification and supervision by the customs office of the place of departure until the ship departs.

Article 4. Tax policies for goods sold at duty free shops

1. Goods temporarily imported for sale at duty free shops are exempt from import duty and are not liable to excise tax and value-added tax.

2. Vietnam-made goods sold at duty free shops are entitled to tax policies applicable to temporary exports.

3. For imports sold at duty free shops for which import duty has been paid, the overpaid tax amount shall be handled in accordance with the law on tax administration.

Article 5. Specialized management of goods sold at duty free shops

1. The import of tobacco products for duty free sale must comply with licenses granted by the Ministry of Industry and Trade.

2. A dossier for licensing must comprise:

a/ The duty free trader’s request for import of tobacco products for sale at duty free shops, made according to Form 03/CV attached to this Decree: 1 original;

b/ The certificate of eligibility for duty free business, or business registration certificate or investment certificate: 1 copy. For traders applying for a license for the first time, the certificate of eligibility for duty free business: 1 copy;

c/ A report on the import, inventory and sale of tobacco products from the year’s beginning to the time of license application, made according to Form 04/BCNKTKTL attached to this Decree and certified by the customs branch managing the duty free shop or duty free warehouse: 1 original.

3. Licensing order and procedures:

a/ A trader shall send by post or submit directly to the Ministry of Industry and Trade a dossier prescribed in Clause 2 of this Article;

b/ Licensing time

Within 10 working days (counting from the date of the receipt mark of incoming correspondence of the Ministry of Industry and Trade) after receiving a complete and valid dossier, the Ministry of Industry and Trade shall grant a license for import of tobacco products for duty free sale to the trader. In case of refusal, it shall issue a written reply clearly stating the reason.

For an incomplete or invalid dossier, within 5 working days (counting from the date of the receipt mark of incoming correspondence of the Ministry of Industry and Trade) after receiving a trader’s dossier, the Ministry of Industry and Trade shall notify and request (in writing, by fax, email or telephone, etc.) the trader to supplement the dossier.

4. Imported cigarettes for sale at duty free shops must have their packaging printed with health warnings in Vietnamese or English in accordance with the law on prevention and control of tobacco harms and the Framework Convention on Tobacco Control (FCTC).

5. Temporary imports sold at duty free shops are not subject to inspection of product and goods quality and food hygiene and safety upon clearance of temporary import procedures. Product and goods quality and food hygiene and safety must comply with law.

6. Goods and products (temporarily imported, imported or domestically made) with cultural, literary, arts and recreational contents presented on any type of material may only be sold at duty free shops after being licensed for dissemination and circulation in Vietnam by a competent state management agency in charge of culture and fully meeting other conditions on goods quality as prescribed by law.

7. Duty free traders shall take responsibility before law for product and goods quality and food hygiene and safety.

8. In case a treaty on specialized management to which Vietnam is a contracting party contains provisions on quality inspection of products and goods or food safety applicable to goods sold at duty free shops different from those of this Article, that treaty shall be applied.

Article 6. Goods sold at duty free shops

1. Goods sold at duty free shops include goods temporarily imported to Vietnam; Vietnam-made goods; goods for which import procedures have been cleared and which are permitted for circulation in accordance with Vietnamese law.

Vietnam-made goods and goods for which import procedures have been cleared and which are permitted for circulation in accordance with Vietnamese law to be sold at duty free shops must be outside the list of goods banned or suspended from export. Those being conditional exports must satisfy conditions prescribed by law.

Goods temporarily imported for sale at duty free shops must be outside the list of goods banned or suspended from import.

2. Goods for which import procedures have been cleared and which are permitted for circulation in accordance with Vietnamese law and Vietnam-made goods sold at duty free shops shall be managed under the temporary export regime.

3. Goods sold at duty free shops shall be kept at duty free shops or duty free warehouses of duty free traders.

4. The time for keeping goods at duty free shops must comply with Point a, Clause 2, Article 47 of June 23, 2014 Law No. 54/2014/QH13 on Customs.

5. Cigarettes, cigars, liquors and beers sold at duty free shops shall be stuck with the “VIETNAM DUTY NOT PAID” stamp issued by the Ministry of Finance. The position for sticking this stamp must comply with the Appendix to this Decree (not translated). Stamps shall be stuck to goods before they are displayed for sale at duty free shops or delivered to goods buyers in case goods are delivered to buyers directly from duty free warehouses.

6. In case goods temporarily imported for sale at duty free shops are sold in the domestic market, the management policy and tax policy for imports shall be applied at the time of opening the new customs declaration for sale in the domestic market unless the policy on management of imports and exports has been fully implemented at the time of registering the first declaration.

7. In case goods managed under the temporary export regime are sold in the domestic market, traders shall comply with the law on re-imported goods.

8. Broken, damaged, deteriorated, poor-quality and expired goods may not be sold for consumption. Traders shall make records of the state of the goods and have them certified by customs branches managing duty free shops or duty free warehouses and destroy the goods under customs supervision in accordance with regulations. Such destruction shall be carried out before the expiration of temporary import or export declarations (including the time for extension of temporary import or export).

9. Traders shall separately manage sample goods and goods for trial use (scent strips, liquors, cosmetics and perfume for trial use, etc.), ensuring that they are used for proper purposes, and report on finalization of these goods to customs offices.

Article 7. Currencies used in transactions at duty free shops

1. Vietnam dong.

2. Freely convertible foreign currencies.

3. Currencies of countries having land borders with places where duty free shops are opened.

Article 8. Duty free allowances

1. Persons on exit or in transit, passengers onboard international flights from Vietnam or persons awaiting exit prescribed in Clause 1, Article 3 of this Decree may purchase duty-free goods without limits in quantity and value but shall take responsibility for procedures and allowances for importing them into countries of entry.

2. Passengers onboard international flights to Vietnam, and persons on entry prescribed in Clauses 2 and 3, Article 3 of this Decree may purchase duty-free goods within the allowances prescribed in Clauses 1 and 2, Article 6 of the Government’s Decree No. 134/2016/ND-CP of September 1, 2016, detailing a number of articles and measures for implementation of the Law on Import Duty and Export Duty.

3. The subjects prescribed in Clause 4, Article 3 of this Decree may purchase duty-free goods within the allowances prescribed in Article 5 of the Government’s Decree No. 134/2016/ND-CP of September 1, 2016, detailing a number of articles and measures for implementation of the Law on Import Duty and Export Duty.

4. The subjects prescribed at Points a and b, Clause 5, Article 3 of this Decree may purchase duty-free goods for personal use and common activities of crewmembers aboard international seagoing ships during the time their ships anchor at Vietnamese seaports, within the allowances for each crewmember for each time a ship anchors at a Vietnam seaport as follows:

a/ Liquors with 20 percent alcohol or more: 1.5 liters, or liquors with less than 20 percent alcohol: 2 liters, or alcoholic beverage or beer: 3 liters.

Liquors in bottle, jar, pot or can (below referred to as bottle) with a capacity which is no more than 1 liter larger than the prescribed allowance are free from duty for the whole bottle. For a bottle with a capacity more than 1 liter larger than the prescribed allowance, duty shall be paid for the volume in excess of the prescribed allowance in accordance with law;

b/ 200 cigarettes or 250 grams of shredded tobacco or 20 cigars.

5. The subjects prescribed at Point c, Clause 5, Article 3 of this Decree may purchase duty-free goods without limits in quantity and value for use onboard ships outside Vietnam’s territorial waters after the ships depart.

Chapter III

CUSTOMS PROCEDURES AND SUPERVISION FOR DUTY FREE BUSINESS ACTIVITIES

Article 9. Customs procedures for goods sold at duty free shops

1. For goods imported from overseas: Traders shall carry out temporary import procedures in accordance with the Government’s Decree No. 08/2015/ND-CP of January 21, 2015, detailing and providing measures for implementation of the Customs Law regarding customs procedures, inspection, supervision and control.

2. For Vietnam-made goods, goods for which import procedures have been cleared and which are permitted for circulation in accordance with Vietnamese law and goods temporarily imported to Vietnam: Traders shall carry out temporary export or re-export procedures in accordance with the Government’s Decree No. 08/2015/ND-CP of January 21, 2015, detailing and providing measures for implementation of the Customs Law regarding customs procedures, inspection, supervision and control.

Article 10. Customs procedures and supervision for goods transported between duty free warehouses and duty free shops

1. Traders shall monitor and manage transportation of goods between duty free warehouses and duty free shops which are based in the same location.

2. For duty free warehouses in isolation areas or other restricted areas other than places where duty free shops are based:

a/ Traders shall transmit goods information to the electronic data processing system before transporting goods, and bring along documents of delivery from duty free warehouses or duty free shops when transporting goods between duty free warehouses and duty free shops. In case of manual processing or the electronic data processing system has a technical error, traders shall notify in writing the goods transportation to customs offices and transmit data to the electronic data processing system within 24 hours after the system is restored;

b/ Customs branches managing duty free shops and duty free warehouses shall inspect transported goods according to risk management principles or when detecting signs of law violation, and approve traders’ notices of goods transportation in case of manual processing or in case the electronic data processing system has a technical error;

c/ As soon as the electronic data processing system is restored, the customs branch managing duty free shops and duty free warehouses shall notify such (in writing, by email, telephone, fax, etc.) to duty free traders.

3. For duty free warehouses located neither in the same location of duty free shops nor in isolation areas or restricted areas:

a/ Traders shall transmit information (goods name, quantity, transportation route) on goods transportation to the electronic data processing system before transporting goods, and print out such information for use as goods circulation document. In case of manual processing or the electronic data processing system has a technical error, traders shall notify in writing the goods transportation to and may only transport goods after obtaining approval from the customs office. Within 24 hours after the technical error is fixed, traders shall transmit data to the electronic data processing system. Traders shall transport goods to the registered places of destination;

b/ Customs branches managing duty free shops and duty free warehouses shall supervise goods loaded to vehicles for transportation between duty free warehouses and duty free shops; approve goods transportation in the electronic data processing system immediately after traders transmit data or produce documents; seal goods before their transportation, clearly writing the customs seal numbers on traders’ hard copies. When goods are transported to places of destination, customs branches managing duty free shops and duty free warehouses shall check the seal, make certification on traders’ documents and supervise goods put into duty free warehouses or duty free shops;

c/ Customs branches managing duty free shops and duty free warehouses shall comply with Point c, Clause 2 of this Article.

Article 11. Customs procedures and supervision for goods transported between duty free warehouses and aircraft providing goods sale services onboard international flights from and to Vietnam

1. Responsibilities of a duty free trader:

a/ When taking goods from a duty free warehouse to an aircraft, to make a goods delivery and receipt slip containing the following information: flight, time of delivery and receipt, names of goods, unit of calculation, quantity, certification by the trader, certification by the airline, and certification by the customs office;

b/ To transmit information on the goods delivery and receipt slip, including flight, time of delivery and receipt, names of goods, unit of calculation, and quantity, to the electronic data processing system;

c/ To transport goods from the duty free warehouse to the aircraft under supervision of the customs branch managing the duty free warehouse;

d/ For unsold goods recalled from international flights: To seal duty-free goods trolleys before taking them out of the aircraft;

dd/ To make 2 statements of cash and foreign currencies with the following information: flight information; names and positions of persons delivering and receiving money; types of money, face values, quantity and total amount. To produce them to the customs office for certification immediately after receiving them from the flight attendant representative. To update information of the statement of cash and foreign currencies to the electronic data processing system.

2. Responsibilities of a customs branch managing a duty free warehouse:

a/ To supervise the loading of goods onto trolleys, make customs sealing and supervise the transportation of goods to the aircraft entrance door. To certify the goods delivery and receipt slip made by the trader, clearly writing the customs seal number;

b/ To supervise goods trolleys from the aircraft for warehousing, inspect and supervise the entry of goods trolleys to the warehouse and make certification on the trader’s receipt slip;

c/ To certify 2 statements of cash and foreign currencies produced by the trader immediately after the trader receives them from the flight attendant representative; to keep 1 copy and give 1 copy to the trader; to make certification in the electronic data processing system.

Article 12. Procedures for selling duty-free goods to persons on exit or in transit, passengers onboard departing aircraft, travelers by sea and crewmembers purchasing duty-free goods for personal use during the time their ships anchor at Vietnamese seaports

1. Responsibilities of a salesperson selling goods to persons on exit or in transit in an isolation area:

a/ To request customers to produce their passports or laissez-passers;

b/ To input data on customer information and their purchased goods in the trader’s software.

Customer information: Full name exactly as written in his/her passport or laissez-passer; passport or laissez-passer number; citizenship; flight number; date of flight as written in the boarding pass, for persons on exit or in transit by air; or date of departure of the vehicle, for persons on exit or in transit by rail or by sea; ship name and date of arrival at seaport, for persons using passenger shore passes.

Goods information: Goods name, unit of calculation exactly as stated in the import declaration; quantity and value of each goods item;

c/ To transmit data to the electronic data processing system. In case the electronic data processing system has a technical error, to transmit data to the system within 24 hours after the system is restored;

d/ To issue sale invoices (including promotion goods, if any) in accordance with regulations;

dd/ To keep sale invoices by selling date (or by roll, if sale invoices are in rolls).

2. Responsibilities of a salesperson onboard a departing aircraft:

a/ To request customers to produce passports;

b/ When selling goods to a customer, to fully write his/her name, passport number, citizenship, flight number, boarding pass, goods name, unit of calculation, quantity, and value on the sale invoice. The goods name and unit of calculation shall be written exactly as they are stated in the import declaration;

c/ Within 24 hours after an aircraft parks in a designated position (when it flies to Vietnam), the duty free trader shall declare in its software customer names, passport numbers, citizenship, flight number, boarding passes, and goods names and unit of calculation exactly as stated in the import declaration, quantities and values in the sale invoices. To transmit data to the electronic data processing system. In case this system has a technical error, to transmit data within 24 hours after the system is restored.

3. Responsibilities of a salesperson selling goods to travelers by sea:

a/ To request customers to produce their passports or laissez-passers;

b/ To input information of customers and their purchased goods in the trader’s software.

Customer information: Full name exactly as written in his/her passport, laissez-passer or passenger shore pass; passport, laissez-passer or passenger shore pass number; citizenship; flight number; date of departure of the vehicle; ship name and date of arrival at seaport, for customers using passenger shore passes.

Goods information: Goods name and unit of calculation exactly as stated in the import declaration; quantity and value of each goods item;

c/ To transmit data to the electronic data processing system. In case the electronic data processing system has a technical error, to transmit data to the system within 24 hours after the system is restored;

d/ To issue sale invoices (including promotion goods, if any) in accordance with regulations;

dd/ To keep sale invoices by selling date (or by roll, if sale invoices are in rolls);

e/ To deliver goods to travelers aboard ships after they complete exit procedures.

4. Responsibilities of a salesperson selling goods to crewmembers for personal use during the time their ships anchor at Vietnamese seaports:

a/ To request crewmembers to produce their passports or shore passes;

b/ To input data on crewmembers and their purchased goods in the trader’s software.

Information of a crewmember: Full name exactly as written in his/her passport or shore pass; passport, laissez-passer or shore pass number; citizenship; date of departure of the vehicle; or ship name and date of arrival at seaport, for customers using crewmember shore passes.

Goods information: Goods name and unit of calculation exactly as stated in the import declaration; quantity and value of each goods item;

c/ To transmit data to the electronic data processing system. In case the electronic data processing system has a technical error, to transmit data to the system within 24 hours after the system is restored;

d/ To issue sale invoices (including promotion goods, if any) in accordance with regulations;

dd/ To keep sale invoices by selling date (or by roll, if sale invoices are in rolls).

5. Responsibilities of a customs branch managing duty free shops and duty free warehouses:

a/ To comply with Point c, Clause 2, Article 10 of this Decree;

b/ On the basis of risk management and signs of law violation, to inspect the sale of duty-free goods through traders’ software, the electronic data processing system and surveillance cameras or directly at duty free shops and duty free warehouses.

Article 13. Procedures for selling duty-free goods to persons on entry at international airports

1. Responsibilities of a duty free salesperson:

a/ To fully perform the responsibilities prescribed in Clause 1, Article 12 of this Decree;

b/ For a customer purchasing goods in excess of the prescribed duty free allowances, the duty free trader shall make 2 notices of customer’s purchase in excess of allowances according to Form 01/PTBHVDM attached to this Decree, notify the customs office at the border gate of importation (in writing and through data transmission to the system). To receive and keep 1 notice signed by and stamped with the customs officer mark of the customs office at the border gate of importation. Particularly, cigarettes may not be sold in excess of their allowance.

2. A person purchasing duty-free goods in excess of duty free allowances shall declare and pay duty to the customs office and comply with relevant laws on import of goods in excess of duty free allowances and submit relevant documents in accordance with law.

3. Responsibilities of a customs branch managing duty free shops and duty free warehouses:

a/ To comply with Point c, Clause 2, Article 10 of this Decree;

b/ On the basis of risk management and signs of law violation, to inspect the sale of duty-free goods through traders’ software, the electronic data processing system and surveillance cameras or directly at duty free shops and duty free warehouses;

c/ To collect duty and keep copies of the documents prescribed in Clause 2 of this Article.

Article 14. Procedures for selling duty-free goods to passengers onboard international flights to Vietnam

1. Responsibilities of a salesperson (flight attendant) and a duty free trader:

a/ To request customers to produce passports and boarding passes;

b/ When selling goods to a customer, to fully write his/her name, passport number, citizenship, flight number, boarding pass, goods name, unit of calculation and value on the sale invoice. The goods name and unit of calculation shall be written exactly as they are stated in the import declaration;

c/ Within 24 hours after the aircraft parks in a designated position, the trader shall declare in its software customer names, passport numbers, citizenship, flight number and date, goods names, quantities, values, and total quantity and value. To transmit data to the electronic data processing system. In case this system has a technical error, to transmit data within 24 hours after the system is restored;

d/ For a customer purchasing goods in excess of the prescribed duty-free allowances, the duty free trader shall make 2 notices of customer’s purchase in excess of allowances according to Form 01/PTBHVDM attached to this Decree, notify such to the customs office at the border gate of importation (in writing and through data transmission to the system). To receive and keep 1 notice signed by and stamped with the customs officer mark of the customs office at the border gate of importation. Particularly, cigarettes may not be sold in excess of their allowance.

2. A person purchasing duty-free goods in excess of duty free allowances shall declare and pay duty to the customs office and comply with relevant laws on import of goods in excess of duty free allowances and submit relevant documents in accordance with law.

3. Responsibilities of a customs branch managing duty free shops and duty free warehouses:

a/ To comply with Point c, Clause 2, Article 10 of this Decree;

b/ On the basis of risk management and signs of law violation, to inspect the sale of duty-free goods through traders’ software, the electronic data processing system or directly at duty free shops and duty free warehouses;

c/ To collect duty and keep copies of the documents prescribed in Clause 2 of this Article.

Article 15. Procedures for selling duty-free goods to persons awaiting exit who purchase duty-free goods at inland duty free shops

1. Responsibilities of a duty free salesperson:

a/ To perform the responsibilities prescribed in Clause 1, Article 12 of this Decree, except for updating information on date and hour of exit of customers;

b/ To make goods delivery slips according to Form 02/PGH attached to this Decree: 2 sheets;

c/ To transmit data to the electronic data processing system. In case the electronic data processing system has a technical error, to transmit data to the system within 24 hours after the system is restored.

2. Responsibilities of a duty free trader:

a/ To transport goods and produce together with goods 2 sheets of the goods delivery slip to the customs office of the border gate from which customers depart for delivery of goods to customers purchasing goods in the isolation area of the border gate of departure;

b/ In case the duty free shop fails to produce the goods delivery slip certified by the customs office of the border gate upon inspection by the customs branch managing the duty free shop or duty free warehouse, to fully pay duty for the sold goods as for imports in accordance with current regulations.

3. Responsibilities of a customs branch managing duty free shops and duty free warehouses:

a/ To monitor feedbacks on goods delivery slips certified by the customs office;

b/ To comply with Point c, Clause 2, Article 10 of this Decree;

c/ On the basis of risk management and signs of law violation, to inspect the sale of duty-free goods through traders’ software, the electronic data processing system and surveillance cameras or directly at duty free shops and duty free warehouses.

4. Responsibilities of the customs branch of a border gate from which goods buyers depart:

a/ To receive goods and goods delivery slips from the staff of inland duty free shops;

b/ To check and compare goods with the contents declared in goods delivery slips;

c/ To sign for certification and stamp the customs officer mark on goods delivery slips;

d/ To give 1 sheet of goods delivery slips to the goods delivery staff of duty free traders and keep 1 sheet;

dd/ At the end of each day (working shift), customs officers shall certify in the electronic data processing system the quantity of certified goods delivery slips. In case this system has a technical error, to certify such quantity in the system within 24 hours after the system is restored.

Article 16. Procedures for selling duty-free goods to organizations and persons entitled to privileges and immunities who purchase duty-free goods at inland duty free shops

1. Responsibilities of a salesperson:

a/ To request customers to produce duty free allowance books, unless these books have been updated on the Vietnam National Single-Window portal;

b/ To input all information on qualitative limits of goods in duty free allowance books produced by customers or data on such books from the Vietnam National Single-Window portal already updated by a competent agency (in case of first-time use of books) and transmitted to the electronic data processing system;

c/ To produce original duty free allowance books to the customs office for certification of duty free allowances licensed in the system, for the case prescribed at Point a of this Clause;

d/ To input information of sale invoices in the trader’s software. To transmit data to the electronic data processing system and receive feedback from the system. In case this system has a technical error, to transmit data to the system within 24 hours after the system is restored;

dd/ To issue sale invoices (including promotion goods, if any) in accordance with regulations;

e/ To cut off stamp squares corresponding to sold goods from duty free allowance books and stick them on sale invoices, for the case prescribed at Point a of this Clause. For sale invoices in rolls, the trader shall keep respective stamp squares by roll of sale invoices;

g/ To keep sale invoices by selling date (or by roll if sale invoices are in rolls).

2. Responsibilities of a customs branch managing duty free shops and duty free warehouses:

a/ For customers purchasing duty-free goods according to duty free allowance books for the first time, to check the original duty free allowance books or check duty free allowances on the Vietnam National Single-Window portal and certify the quantity of goods customers are allowed to purchase for reconciliation of duty free allowances in the system;

b/ On the basis of risk management and signs of law violation, to inspect the sale of duty-free goods through traders’ software, the electronic data processing system and surveillance cameras or directly at duty free shops and duty free warehouses;

c/ To comply with Point c, Clause 2, Article 10 of this Decree.

Article 17. Procedures for selling duty-free goods to crewmembers working aboard international seagoing ships

1. In case of purchase of duty-free goods for common activities of crewmembers working aboard international seagoing ships during the time their ships anchor at Vietnamese seaports pending departure, a salesperson shall:

a/ Request the order-placing person to produce his/her passport and to submit the original goods order and the original list of crewmembers;

b/ Check the goods order of the shipmaster or ship representative, the crewmember list and goods purchase limits of each crewmember;

c/ Input data of the goods order in the trader’s software; transmit data to and receive feedback from the system. In case the system has a technical error, the trader shall transmit data to the system within 24 hours after the system is restored;

d/ Issue the sale invoice (including promotion goods, if any) which must fully contain the following information: full name, passport number and citizenship of the shipmaster or ship representative, ship number and date of entry;

dd/ Keep sale invoices signed by the shipmaster or ship representative, goods orders and crewmember lists.

2. In case of purchase of duty-free goods for use by crewmembers working aboard international seagoing ships in the next voyage outside Vietnam’s territorial waters, a salesperson shall:

a/ Request the order-placing person to produce his/her passport and to submit the original goods order and the original list of crewmembers;

b/ Check the goods order and crewmember list. Input information of the sale invoice in the trader’s software, including passport number and citizenship of the shipmaster or ship representative, ship number and date of entry; name, quantity and value of each goods item. Transmit data to and receive feedback from the system. In case the system has a technical error, transmit data to the system within 24 hours after the system is restored;

c/ Issue sale invoices in accordance with regulations;

d/ Transport goods to ship holds;

dd/ Keep sale invoices signed by shipmasters or ship representatives and certified by customs officers of the customs office clearing exit procedures for ships, goods orders and crewmember lists.

3. Responsibilities of a customs branch managing duty free shops and duty free warehouses:

a/ To supervise goods from duty free shops until they are supervised by the customs office of the place of departure of ships;

b/ To comply with Point c, Clause 2, Article 10 of this Decree.

4. Responsibilities of a customs branch clearing departure procedures for ships: To seal ship holds where duty-free goods are kept, to certify that goods have passed supervision areas (sign and stamp customs officer marks on sale invoices) and to conduct supervision until ships depart.

Article 18. Procedures for goods put for sale at duty free shops which change the use purpose

1. Forms of change of use purpose: Re-export, re-import, shift to domestic sale.

2. Procedures for change of use purpose of temporary imports

a/ A duty free trader shall make a written request for re-export or re-import or shift to domestic sale, which must clearly state each goods item, code, quantity, value and temporary import or temporary export declaration number: 1 original;

b/ The procedures for re-export, re-import and shift to domestic sale must comply with current regulations;

c/ Goods management and tax policies at the time of registering customs declarations of change of goods use purpose shall apply to goods shifted to domestic sale. Particularly, cigarettes may not be sold domestically.

3. For Vietnam-made goods and goods for which import procedures have been cleared and which are licensed for circulation in accordance with Vietnamese law which are put for sale at duty free shops but later are introduced into the inland, regulations on re-imported commercial goods shall be applied and the stamp “VIETNAM DUTY NOT PAID” stuck on each good item shall be removed under supervision by the customs office managing the duty free shop and a record of the quantity of the removed stamps shall be made.

Article 19. Procedures for destroyed goods, sample goods and goods for trial use

1. Broken, damaged, deteriorated, poor-quality and expired goods must comply with Clause 8, Article 6 of this Decree:

a/ When making a record of broken, damaged, deteriorated, poor-quality or expired goods, a trader shall clearly state the reason and information on the goods, including name, code, quantity and value of goods. Based on this record and physical inspection of the goods, the customs officer managing the duty free shop shall sign and stamp the customs officer mark for certification of such goods;

b/ The trader shall destroy the goods in accordance with current law and under customs supervision.

2. Provisions on sample goods and goods for trial use at a duty free shop (excluding promotion goods) are as follows:

a/ When introducing sample goods and goods for trial use into a duty free shop, a trader shall make a statement of their quantities and types and send it to the electronic data processing system and receive feedback from the system;

b/ Monthly (no later than the seventh working day of a month), the trader shall summarize statistics of sample goods and goods for trial use which have been used and which are left in the previous month and transmit them to the electronic data processing system.

In case of having no doubt about the trader’s reported statistics, within 3 working days, it shall certify such statistics in the system.

In case of doubting the trader’s reported statistics, within 7 working days, the customs office shall examine related dossiers, and when necessary, physically inspect the goods inventory and certify in the system the trader’s statistics according to examination conclusions.

Article 20. Procedures for duty free traders’ cash brought into and out of isolation areas and restricted areas

1. Responsibilities of a duty free trader:

a/ To transmit data according to Form 05/BKTMVRCL attached to this Decree to the electronic data processing system before bringing cash into or out of an isolation area;

b/ To implement requests made by the customs office through feedback of the system. To produce cash at the customs office’s request.

2. Responsibilities of a customs office:

a/ When receiving a trader’s declared information and feedback of the system to the trader, the customs officer shall check contents declared in the system;

b/ To supervise cash brought into and out of isolation areas;

c/ To physically examine cash brought into and out of isolation areas on the basis of risk management or signs of law violation;

d/ The customs officer shall certify in the system cash passing through the supervision section, for cash brought into and out of isolation areas.

3. In case of manual processing or the electronic data processing system has a technical error:

a/ A trader shall make declarations on 2 statements, made according to Form 05/BKTMVRCL attached to this Decree, for examination and certification by the customs officer and produce cash when so requested by the customs office. In case the electronic data processing system has a technical error, within 24 hours after the error is fixed, the trader shall transmit data of the statement to the system;

b/ The customs office shall supervise cash brought into and out of isolation areas; physically examine cash by applying risk management or when detecting signs of law violation; and certify 2 statements produced by the trader, after completing its cash examination (in case physical examination is required) or after checking cash passing through the supervision section, and keep 1 copy and return 1 copy to the trader.

Article 21. Finalization reports on goods sold at duty free shops

1. Time limit for submission of finalization reports on goods sold at duty free shops:

a/ Annually, a duty free trader shall submit to the customs office its finalization report on sale of duty-free goods in the fiscal year on the 90th day after the end of the fiscal year at the latest;

b/ After submitting its finalization report, a duty free trader may modify this report within the time limit for submission of finalization reports and before the customs office issues a notice of examination or non-examination of its report.

2. Place for submission of finalization reports

Customs branches managing duty free shops and duty free warehouses or customs branches of places where traders are headquartered, for traders having various duty-free business places under the management of different customs branches or provincial-level Customs Departments.

3. Responsibilities of a duty free trader:

a/ To submit finalization reports on goods sold at duty free shops according to the principle of input, output and inventory, made according to Form 07/BCQT attached to this Decree, to the customs office through the electronic data processing system. The finalization report must match accounting documents of the duty free trader. In case of manual processing, to submit 2 hard copies (the original);

b/ To provide customs dossiers, accounting documents and account books, sale documents and other papers (if any) for examination of finalization reports when so requested by the customs office.

4. A customs branch managing duty free shops and duty free warehouses shall receive finalization reports on duty free business submitted by duty free traders and examine these reports in accordance with this Article.

5. Cases subject to examination of finalization reports:

a/ Finalization reports submitted by duty free traders for the first time;

b/ Finalization reports containing abnormal statistical differences from the customs office’s system, which have been explained by traders but are not accepted by the customs office;

c/ Examination of finalization reports on the basis of risk management and assessment of law observance by duty free traders;

d/ Finalization reports of each duty free shop of duty free traders having various duty free shops under the management of different customs branches or provincial-level Customs Departments.

6. Contents of examination of finalization reports

Contents to be examined: customs dossiers, accounting documents, goods inventories at duty free shops and duty free warehouses. Traders shall produce customs dossiers and accounting documents, for documents showing statistics which are not stored in the electronic data processing system or which are inconsistent with those in the electronic data processing system.

7. Examining competence

Heads of customs branches managing duty free shops and duty free warehouses shall issue examination decisions and organize the examination.

8. Examination time

For a finalization report subject to examination, the customs office shall notify such to the duty free trader within 20 days after receiving that report. Examination must not last for more than 5 working days from the date of starting examination at the duty free trader’s head office. The customs branch head may issue a decision extending an examination for no more than another 5 working days.

9. Examination order and procedures: Examination of a finalization report must comply with the customs branch head’s decision which shall be sent to the duty free trader within 3 working days after the date of its signing and at least 5 working days before the date of examination. Examination contents shall be recorded in examination records between the duty free trader’s authorized representative and the examination team. An examination decision must contain information on the examiner and examinee, examination contents, starting and closing times of examination, and examination place.

10. Handling of examination results: Within 5 working days after completing examination at the head office of a duty free trader, the customs office shall notify the examination results to the examined trader, stating the conformity or inconformity (if any) of the finalization report for the trader to give explanations.

a/ In case the examination shows that the finalization report matches accounting documents and account books and dossiers of duty-free goods, the customs office shall issue an examination conclusion, certify the examination result on the finalization report and input this result on the system;

b/ In case the report does not match accounting documents and account books and dossiers of duty-free goods, the customs office shall request the trader to give explanations within 5 working days. In case the customs office agrees with the trade’s explanations, within 5 working days, it shall issue an examination conclusion, certify the examination result on the finalization report and input this result on the system;

c/ In case the customs office disagrees with the trader’s explanations or the trader fails to give explanations, the customs office shall, on the basis of the tax and customs laws and current dossiers, decide on tax handling and handle administrative violations according to its competence or propose handling by a competent person in accordance with law;

d/ An examination conclusion must state the examination decision, scope and contents, opinions of the examinee, conclusion of each examined content and severity of violation (if any) and handling measures or proposed handling measures of the examination team.

11. For a finalization report not subject to examination, within 10 working days after receiving that report, the customs office shall give feedback through the system that the report is approved and is not subject to examination, and certify in the system that the trader has completed its finalization report.

Article 22. Customs procedures applicable to the case in which a trader has various duty free shops and duty free warehouses in different places under the management of different customs branches or provincial-level Customs Departments

1. Responsibilities of the trader:

a/ To carry out customs procedures for goods put for sale at duty free shops in accordance with regulations of the customs branch of the locality where the trader is headquartered;

b/ To have a management software system for each of its duty free shops and warehouses, which is connected with customs branches managing duty free shops and duty free warehouses and with the customs branch of the locality where the trader is headquartered, for monitoring through the trader’s software system goods of all duty free shops and duty free warehouses;

c/ When taking goods from a duty free shop or duty free warehouse to another shop or warehouse under the management of another customs branch, to make a delivery slip in accordance with regulations which must contain the following information: place of the duty free shop or duty free warehouse of destination; and the customs branch managing the duty free shop or duty free warehouse of destination;

d/ To transport goods in their original state to duty free shops or duty free warehouses stated in delivery slips;

dd/ To submit finalization reports in accordance with Clauses 1 and 2, Article 21 of this Decree to customs branches managing each of its duty free shops within 30 days after the end of a fiscal year of the trader. In case of manual processing, to submit 3 (original) finalization reports to the customs office (1 copy to the customs office managing the duty free shop, 1 kept at the duty free shop, 1 to the customs office of the locality where the duty free trader is headquartered);

e/ To submit its general finalization reports in accordance with Article 21 of this Decree to the customs branch of the locality where the trader is headquartered. In case of manual processing, in addition to general finalization reports, to submit finalization reports of every duty free shop containing certification of completion of examination of finalization reports by the customs office managing the duty free shop;

g/ To comply with provisions on examination of finalization reports in Article 21 of this Decree.

2. Responsibilities of the customs office of the place from which goods are transported:

a/ To supervise the loading of goods onto vehicles and make customs sealing;

b/ Based on information of the delivery slip, to make 2 records of delivery of duty-free goods transported under customs supervision according to Form 06/BBBG attached to this Decree and give them to the trader for forwarding to the customs branch managing the duty free shop or duty free warehouse to which goods are transported;

c/ To monitor information on transported goods, to assume the prime responsibility for tracking goods in case past the prescribed time limit goods have not been transported to the place of destination.

3. Responsibilities of the customs office of the place to which goods are transported:

a/ Based on the delivery record made by the customs branch of the place from which goods are transported, to supervise the unloading of goods from vehicles to the duty free warehouse or duty free shop;

b/ To make certification on 2 delivery records, to give 1 to the trader and to send 1 to the customs branch of the place from which goods are transported;

c/ To monitor information on transported goods, to coordinate with the customs branch of the place from which goods are transported in tracing goods in case past the prescribed time limit goods have not been transported to the place of destination.

4. Responsibilities of a customs branch managing duty free shops and duty free warehouses:

a/ To receive and examine finalization reports and send examination conclusions and finalization reports already examined to the customs branch of the locality where the trader is headquartered. The time limit for completing examination is 45 days after traders submit finalization reports;

b/ To conduct examination in accordance with Clauses 5, 6, 7, 8, 9 and 10, Article 21 of this Decree.

5. Responsibilities of the customs branch of the locality where a trader is headquartered:

a/ To receive finalization reports of every duty free shop and general finalization reports of the trader and examination conclusions of the customs branch managing each duty free shop;

b/ To examine the conformity between finalization reports of individual duty free shops and conformity between reported statistics and statistics in the electronic data processing system. To certify general finalization reports of the duty free trader. In case statistics of a finalization report and those in the system are inconsistent, to exchange an official letter with the customs branch managing the duty free shop or duty free warehouse having inconsistent statistics. To report on a complex case to the leader of the provincial-level Customs Department for reporting to the General Department of Customs to set up an examination team to examine the trader’s duty free shops and duty free warehouses.

Article 23. Responsibilities of eligible duty free buyers under Article 3 of this Decree

1. A duty free buyer shall produce and provide necessary information when purchasing duty-free goods prescribed in this Decree and may not let another person use his/her passport and duty free allowances.

2. To fulfill tax obligations and other obligations under policies on imports to the customs office in case of purchase of goods in excess of duty free allowances.

Article 24. Coordination among operators of seaports, international civil airports and international railway stations, management units of international land border gates, units assigned to manage international land border gates, duty free traders and customs offices

1. Customs branches managing duty free shops and duty free warehouses shall reach agreement with operators of seaports, international civil airports and international railway stations, management units of international land border gates and units assigned to manage international land border gates on the places for customs supervision of goods and cash brought into and out of isolation areas and restricted areas.

2. Duty free traders shall notify customs branches managing duty free shops and duty free warehouses of lists of persons tasked to bring goods and cash into and out of isolation areas and restricted areas and salespersons to meet supervision requirements of customs offices.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 25. Effect

1. This Decree takes effect on February 15, 2017.

2. This Decree annuls the following documents:

a/ The Prime Minister’s Decision No. 24/2009/QD-TTg of February 17, 2009, promulgating the Regulation on duty free business;

b/ The Prime Minister’s Decision No. 44/2013/QD-TTg of July 19, 2013, amending and supplementing a number of articles of the Regulation on duty free business promulgated together with the Prime Minister’s Decision No. 24/2009/QD-TTg of February 17, 2009;

c/ The Prime Minister’s Decision No. 39/2015/QD-TTg of September 11, 2015, amending and supplementing a number of articles of the Regulation on duty free business promulgated together with the Prime Minister’s Decision No. 24/2009/QD-TTg of February 17, 2009, and Decision No. 44/2013/QD-TTg of July 19, 2013;

d/ The Minister of Finance’s Circular No. 148/2013/TT-BTC of October 25, 2013, guiding implementation of the Regulation on duty free business promulgated together with the Prime Minister’s Decision No. 24/2009/QD-TTg of February 17, 2009, and Decision No. 44/2013/QD-TTg of July 19, 2013, amending and supplementing a number of articles of the Regulation on duty free business promulgated together with the Prime Minister’s Decision No. 24/2009/QD-TTg of February 17, 2009;

dd/ The Minister of Finance’s Circular No. 207/2015/TT-BTC of December 25, 2015, amending and supplementing the Minister of Finance’s Circular No. 148/2013/TT-BTC of October 25, 2013, guiding implementation of the Regulation on duty free business promulgated together with the Prime Minister’s Decision No. 24/2009/QD-TTg of February 17, 2009, and Decision No. 44/2013/QD-TTg of July 19, 2013, amending and supplementing a number of articles of the Regulation on duty free business promulgated together with the Prime Minister’s Decision No. 24/2009/QD-TTg of February 17, 2009;

e/ The Minister of Industry and Trade’s Circular No. 02/2010/TT-BCT of January 14, 2010, on import of cigarettes for duty free sale.

Article 26. Transitional provisions

For goods sold at duty free shops under temporary import or export declarations prior to the effective date of this Decree, duty free traders shall liquidate such goods in accordance with the Minister of Finance’s Circular No. 148/2013/TT-BTC of October 25, 2013, guiding the implementation of the Regulation on duty free business promulgated together with the Prime Minister’s Decision No. 24/2009/QD-TTg of February 17, 2009, and Decision No. 44/2013/QD-TTg of July 19, 2013, amending and supplementing a number of articles of the Regulation on duty free business promulgated together with the Prime Minister’s Decision No. 24/2009/QD-TTg.

Article 27. Implementation responsibility

1. The Ministry of Finance shall develop the electronic data processing system for receiving, handling, monitoring and managing goods brought into and out of and sold at duty free shops and guide problems arising from duty free business activities.

2. Ministries shall, based on their functions and tasks, guide the quality inspection of products and goods and food hygiene and safety for temporary imports sold at duty free shops, for which customs procedures have been cleared.

3. Ministers, heads of ministerial-level agencies, heads of government-attached agencies and chairpersons of provincial-level People’s Committees shall implement this Decree./.